I have a foreign securities account tied to a foreign cash account for holding sales proceeds. I have paid capital gains on all sales while maintaining the proceeds in the foreign account. Due to devaluation of the foreign currency over time, when I withdraw money and convert it to USD, I receive less than I declared for capital gains. Can I take a loss from the devaluation?
Yes, you can report your loss on your foreign currency conversion by following the steps below:
You will then add an item titled "Loss on foreign currency transactions." and enter the loss as a negative amount.
You may use the average exchange rate of 2015 or the exchange rate on the date you changed the money.
http://www.irs.gov/Individuals/International-Taxpayers/Yearly-Average-Currency-Exchange-Rates
Yes, you can report your loss on your foreign currency conversion by following the steps below:
You will then add an item titled "Loss on foreign currency transactions." and enter the loss as a negative amount.
You may use the average exchange rate of 2015 or the exchange rate on the date you changed the money.
http://www.irs.gov/Individuals/International-Taxpayers/Yearly-Average-Currency-Exchange-Rates